Sandisk sold a lot more flash and charged more for it.
That is the clean reading of the company’s latest full-year report. Revenue for the twelve months ended July 3, 2026, reached $20.2 billion, up from $7.4 billion a year earlier. Gross profit climbed to $14.5 billion from $2.2 billion, and operating cash flow went from $84.0 million to $11.7 billion.
The margin change was even larger than the sales jump. Gross margin rose to 71.5% from 30.1%, while operating income moved from a $1.4 billion loss to $12.4 billion of income. Sandisk attributes the improvement to two very unglamorous forces: volume and pricing.
Management’s explanation is unusually direct:
"Gross profit margin increased 4,100 basis points in 2026 compared to 2025 primarily due to higher sales and higher pricing."
Sandisk, 10-K, Aug. 17, 2026
That is a large change in reported margins. Datacenter revenue increased 437%, and Edge revenue increased 195%, with Sandisk citing higher sales and higher pricing for both. Consumer revenue rose 29%, though the company said higher pricing was partly offset by lower sales.
The cash number shows the change in reported liquidity. Cash on the balance sheet rose to $4.8 billion from $1.5 billion, while capital spending fell to $177.0 million from $204.0 million. Free-cash-flow margin improved by 58.4 percentage points, according to the comparable-period accounting analysis.
Then the balance sheet adds a wrinkle. Accounts receivable rose from $1.1 billion to $4.7 billion, a 340.8% increase, faster than revenue. Inventory increased 29.8%, and days inventory outstanding rose by 43 days. Sandisk does not disclose the reason for the receivables increase in the supplied filing receipts.
The company does explain the inventory move:
"DIO increased 43 days over the prior year, primarily due to inventory builds to meet demand."
Sandisk, 10-K, Aug. 17, 2026
So the report contains both a cash-generation surge and a much larger amount of money tied up in customer balances. Those facts are not mutually exclusive: the filing reports an enormous operating-cash-flow increase alongside sharply higher pricing and sales, even as the year-end balance sheet carries more unpaid invoices. The next report’s receivables balance and operating cash flow will put the collection question on a fresh period’s footing.
There is also a little more spending behind the new scale. Research and development rose 17.3% to $1.3 billion, with Sandisk citing compensation, headcount, project spending, and stock-based compensation. Diluted shares increased 6.9% to 155.0 million, a smaller change than the revenue surge but still part of the capital structure’s new baseline.
Shares closed at $1,787.84 on Aug. 17, up 8.9% that day. The market figure is a separate fact from the accounting result, and the supplied information does not identify a cause for the move. What the annual report leaves unanswered is more basic: how much of the $4.7 billion in receivables has become cash by the time Sandisk reports again?